Akzo Nobel India Receives GST Demand Order of ₹44.98 Lakh from Telangana Department

Akzo Nobel India Limited has received a GST demand order from the Telangana GST Department, escalating a tax dispute that began with a show cause notice issued in September 2025. The company disclosed this development to stock exchanges on January 1, 2026, under regulatory compliance requirements.

GST Demand Details

The Assistant Commissioner, Kukatpally CGST Division, Hyderabad issued the order on December 29, 2025, which the company received on January 1, 2026. The demand breakdown is as follows:

Component:	Amount
Tax Amount:	₹40.86 lakh
Penalty:	₹4.13 lakh
Interest:	As applicable
Total Demand:	₹44.98 lakh

Background and Timeline

The dispute originated from a show cause notice issued by the Telangana GST Department on September 30, 2025, concerning the disallowance of input tax credit under Section 73 of the CGST/SGST Act, 2017. The notice covered the period from April 2021 to March 2022 and initially mentioned a demand of ₹40.86 lakh comprising tax, interest, and penalty as applicable.

The company had responded to the show cause notice along with supporting documents within the stipulated time limit. However, after reviewing the company's response, the GST department proceeded to issue the final demand order with an increased total amount due to the addition of specific penalty calculations.

Current Status and Next Steps

The order remains open for further submissions to the relevant authorities, and Akzo Nobel India is currently preparing its response within the indicated timeframe. The company has not disclosed any settlement discussions or the potential financial impact of this demand on its operations.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI circular dated July 13, 2023. This represents an update to the pending litigation that was initially disclosed on October 1, 2025, following the receipt of the original show cause notice.

The matter does not involve any litigation against key management personnel, promoters, or ultimate persons in control of the company. As the proceedings remain active, the company will continue to provide updates as required under regulatory guidelines until the dispute is resolved or litigation is concluded.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.12%	-0.85%	-9.52%	-7.63%	-7.05%	+30.34%

Akzo Nobel India Limited has received a GST order from the Karnataka GST Department, marking a significant development in the ongoing litigation that began with a show cause notice in September 2025. The order, dated December 29, 2025, and received by the company on December 30, 2025, shows a substantial reduction in the demand amount compared to the initial notice.

GST Demand Reduction Details

The final order shows a considerable decrease in the total demand amount. The comparison between the initial show cause notice and the final order reveals the extent of this reduction:

Parameter	Initial Show Cause Notice	Final Order	Reduction
Total Demand	₹14,96,19,736	₹2,45,61,915	₹12,50,57,821
Tax Amount	₹9,17,69,407	₹1,38,13,025	₹7,79,56,382
Interest Amount	₹5,78,50,329	₹93,67,588	₹4,84,82,741
Penalty Amount	As applicable	₹13,81,302	-

Background of the GST Litigation

The litigation originated from a show cause notice issued by the Karnataka GST Department on September 30, 2025. The notice pertained to the disallowance of input tax credit under section 73 of the CGST/SGST Act, 2017, covering the period from April 2021 to March 2022.

Following the receipt of the show cause notice, Akzo Nobel India submitted its response along with supporting documents within the stipulated time limit. The Deputy Commissioner of the Large Taxpayers Unit (LTU) of the Karnataka GST Department reviewed the company's reply before issuing the final order.

Current Status and Next Steps

The order remains open for further submissions to the relevant authorities. The company is currently in the process of preparing its response within the timeframe indicated by the GST department. This development represents a significant improvement from the initial demand, though the matter remains under active consideration.

Regulatory Compliance

The company has disclosed this update in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI circular SEBI/HO/CFD/CFDPoD1/P/CIR/2023/123 dated July 13, 2023. This follows the company's earlier disclosure made on October 1, 2025, regarding the pending litigation.

The substantial reduction in the demand amount from ₹14.96 crores to ₹2.46 crores indicates a favorable development for the company, though the final resolution of the matter is still pending based on further submissions and departmental review.